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Leslie Sarná

The virtuous circle of avocados: policies, agronomic management and sustainable financing

Peru

Climatic conditions are undoubtedly one of the most decisive factors in avocado cultivation. Suitable temperatures, favorable relative humidity, desired water quality, and loose soils directly influence the fruit growth rate, resource use efficiency, and final fruit quality. When these variables align, the crop's productive potential is more clearly expressed, provided there is sound agronomic management to support this scenario.

An example of this is what is currently being observed in the Olmos area, in northern Peru. Industry professionals agree that December has been a cool month, with suitable minimum and maximum temperatures, as well as relative humidity still conducive to fruit growth.

Climate, as a structural variable in the agricultural business, also plays a central role in the conversation about sustainability and carbon footprint. Suitable climatic conditions allow for more efficient production, reducing the unnecessary use of water, energy, and inputs, and thus the associated emissions. Furthermore, responsibly managing natural resources helps prevent, mitigate, and manage environmental impacts. In this sense, climate and agronomic management not only impacts yield but also the environmental performance of avocado cultivation and the approach to risk management.

Increasingly, avocado exporting companies are aligning their policies and processes with international standards, not only as a compliance exercise, but also as a tool to strengthen their competitiveness and resilience to climate change. This approach is also valued by the financial sector, where sustainability-linked loans are gaining prominence. Companies that demonstrate sound management of their environmental and climate risks, aligned with ESG criteria and standards such as those of the IFC, gain access to better financing terms and long-term relationships with responsible investors.

Here, for example, the IFC Performance Standard 3, focused on resource efficiency and pollution prevention, is particularly relevant. This standard promotes practices aimed at optimizing water and energy consumption, improving the efficiency of production systems, reducing greenhouse gas emissions, and properly managing waste and effluents. In the context of avocado cultivation, we see that this translates into the implementation of improvements such as: more efficient irrigation, adjusted fertigation or the use of organic liquid fertilizers, responsible use of inputs, incorporation of monitoring technologies, use of vehicles powered by sustainable energy, and a proactive approach to environmental impacts.

This consolidates a virtuous cycle where high-level technical and environmental management strengthens the sustainability of the avocado business. Impacts are reduced, efficiency is improved, access to sustainable financing is gained, and investment in technology and innovation continues. The avocado sector continues to demonstrate that professionalism and sustainability go hand in hand toward solid and responsible growth.

Leslie Sarná Roedenbeck
General manager
Leal Investments and Consulting
leslie@agroleal.pro

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